Holiday gasoline cheapest since '10

Story Highlights

Cincinnati prices hit 2014 highs in late April.

N.Ky. prices have dropped since mid May.

With the Memorial Day weekend, Cincinnati area residents will join other Americans hitting the road for summer trips and vacations. But the price of gasoline, used to fuel those trips, hit its seasonal peak before the driving season began.

An Enquirer analysis of local gas prices shows they hit highs for 2014 in late April in Southwest Ohio and in early May in Northern Kentucky. In fact, gas prices here are averaging 5 to 8 cents lower than a year ago after adjusting for inflation, the analysis based on data from the Oil Price Information Service shows. The national average is 4 cents lower than ahead of last year's holiday.

Including the inflation adjustment, drivers who buy gas locally will pay the lowest price per gallon for a Memorial Day since 2010, the analysis also reveals.

The most recent forecast by the federal Energy Information Administration predicts regular gasoline prices will average $3.61 per gallon, which is a little less than last summer's inflation adjusted average of $3.63. Prices hit their high this moth and expected to drop to a national average of $3.51 in September, the EIA forecast shows.

The government isn't alone in its assessment of the gasoline market.

"In the near term, there is a good chance that retail prices will continue dropping, but probably only modestly," said Trilby Lundberg, president of the Lundberg Survey, in an interview with Bloomberg News.

What is making retail prices similar to last year's, along with the forecasted summerlong drop? Crude production in April was 8.3 barrels a day, the highest level in 26 years. The increased production is likely holding crude prices down.

With nearly 1.3 million Ohioans and 36.1 million people nationwide planning to travel, AAA expects that 88 percent of them will get away via cars and other vehicles. The forecast shows a 0.6 percent increase in travel by Ohioans and a 1.5 percent increase nationally.

While gasoline prices are down compared to last year, other travel expenses such as hotel rates, rental cars and air fares are up, AAA says.

With the increase in traffic this holiday, the auto club warns drivers to plan accordingly for heavy traffic, especially Friday and Sunday.

"After a harsh winter, people are ready to travel," said Cheryl Parker, public affairs manager for Downtown Cincinnati-based AAA Allied Group. "We want to make sure they enjoy their trips and make it to and from their destinations safely."

GAS PRICES ON MEMORIAL DAY

Local drivers will pay less for gasoline in 2014 than they have for any Memorial Day since 2010, an Enquirer analysis of historic, inflation-adjusted gas prices on the holiday shows.

Here's a look at what it will cost this year to drive from Cincinnati to four locations that AAA says are popular with area residents. The calculations are based on three different kinds of best-selling vehicles.